When revenue growth outpaces expenditure growth or after a decrease in costs, spending, or both, a budget surplus can result. A surplus might also emerge from higher taxes.
A budget surplus could be put to use for a purchase, debt repayment, or retirement planning. If a community has a budget surplus, it might utilise that money to make renovations, such reviving a run-down park or downtown.
A surplus suggests the government has additional resources. The national debt might be paid off with these cash, lowering interest rates and boosting the economy. A budget surplus can be used to lower taxes, launch new initiatives, or continue funding long-running initiatives like Social Security and Medicare. When revenue growth outpaces expenditure growth or after a decrease in costs, spending, or both, a budget surplus can result. A surplus can also be produced by raising taxes.
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